Calculate Future/present values and “original principal amount” and “value of an annuity ” and rates of interests (FINANCE HOMEWORK)

 

1.         Calculate future value of $5,600 received today and deposited at 9 percent for three years.

 

2.         Calculate the present value of $90,000 to be received in 15 years, assuming an opportunity cost of 14%.

 

3.             Calculate the present value of a $10,000 perpetuity at a 8% discount rate.

 

 

4.         You have obtained a seven year, 8 percent loan with a bank requiring annual end of year payments of $960.43.  Calculate the original principal amount.

 

 

5.        Calculate the future value of an annuity of $5,000 each year for eight years, deposited at 6 percent.

 

 

6.         Calculate the future value of an annuity of $5,000 each year for eight years, deposited at 6%.

 

7.         A deep discount bond can be purchased for $312 and in 20 years it will be worth $1,000.  What is the rate of interest on the bond?

 

8.         You have borrowed $25,000 from the bank at 15 percent to be repaid in 10 equal annual installments.  Calculate the end of year payment.